Ageing Population in Australia

This article discusses the challenges and impact of the ageing population in Australia. It explores the economic, social, and government implications of this issue. It also provides solutions and strategies to address the challenges posed by the ageing population.

Running Head: AGEING POPULATION IN AUSTRALIA
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Foundation of Social Innovation

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Wicked problem of Australia: increasing number of aged people in the country
It is true that ageing people in the country in the wicked problem of Australia. It also
puts huge impact on the overall economy of Australia. It is found that the population of
Australia will grow and become older. This tends to make the baby boomers to move to the
old age. In addition to this, ageing workforce also puts significant impact on the economic
productivity, government expenditure, labour supply, as well as requirement in the
infrastructure. The estimated figures by 2060 are that it will rise by around 38 million. As
compare to this, people who are having the age of 75 or more than that is also expected to
increase by 4 million from the year 2012 to 2060 (Laidlaw and Pachana, 2009). As per the
report of intergenerational, it is seen that it leads to decrease in the birth rates as people are
living for long time as well as expectancy rate is also increasing between the ages from 78 to
83.
Projections are made regarding the demographic change regarding the ageing
population of Australia. The ratio of the ageing population over the 65 years can increase by
the 12 to 18% by the year 2021. It means by the year 2051, it will reach to 26 per cent. This
ageing workforce of Australia led in the “Second World War baby boom” due to the decline
in birth rate. In this way, it is clear that people of Australia will have the longest expectancy
rate of life. For instance- if a girl will born between the year 1995 and 1999 has an average
age of living around 83 years (Gong & Kendig, 2016).
Older Australian people who belong to linguistic and cultural background have
increased due to the proportion of older population. In the coming future, total number of
ageing people also expected to rise with long-term disability. Considering the positive
aspects, rise in the expectancy of longer life also shows the improvement in the living
standard of people (Asquith, 2009). The ageing population of Australia is also occurring at
the time when technological, economic, and social changes are taking place at rapid rate. All
the modification in the structure of family is the part of social changes that can also affect the
retirement income and lifestyle issues. In the previous few years, Australia have also shown
the better capacity in responding to all the changes by reforming the policies and plan in
order to meet the several needs by taking action.

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The increasing ageing workforce is also putting significant effect on the several areas
such as government, economy and the organization. From the perspective of organization, it
will face the shortage of skilled and capable workers (Power, 2017). It will also not able to
diversify or increase their business properly. From the perspective of economy and
government, the ageing workforce will affect the fiscal policies and budget directly.
Government expenditure will increase on the hospitality and on the facilities of aged care. In
this way, total budget for the development of economy will definitely decrease. All these
factors will also lead to slowing the economic growth (Pakulski, 2016).
It is true that the ageing population will increase the demand for nursing homes,
hospitals, and for the pension payment. When the demand for other services and goods
increases, it is normally seen as the opportunity rather than seeing it as problem (Atalay &
Barrett, 2015). Many older persons are relatively poor and cannot afford to afford the better
standard of living. The ageing Australian workforce also bringing the changes in taxation
policy of government as it is directly connected with the people who are paying tax. In this
way, it is clear that the money given to retired person will be increased and this will make the
government to raise the tax that requires the approval of Australian people. Expenditure of
government will also affect from the other side as they are required to spend on the health
care service and more facilities will be required to provide to the ageing workforce such as
effective transportation policy, facilities for aged so that they can get the easy access to all
type of service easily.
Government of Australia is also coming up various solutions of immigration policy.
This will help in keeping the balance between ageing population. It will not prove to be the
long-term solution as ageing population is affected by many factors such as mortality,
fertility, interstate migration, overseas migration. However, there is a requirement to expand
the difference between the level of fertility and mortality. “Australian National Policy” is
such a shift for the skilled migration programme. It can also prove to be the effective way to
slow down the rate of ageing population in Australia (McDonald, 2016).
An ageing workforce of Australia also put the market consequences such as the characteristic
of recent generation workers will be different or vary against the younger worker and middle
age worker. Then presence of experience is also higher than the less educated. IN turn, they
are getting the less training and less productivity. In addition to this, aged people also have
the high level of ownership at home. It is true that youth of the Australia mainly lives on the

AGEING POPULATION IN AUSTRALIA 3
rent and as compare to this, couples have the capacity to buy the home in their early stage
only. Due to this, government of Australia started supporting students through taking the
financial measures such as rent assistance, youth allowances, as well as Austudy (Atkins &
Tonts, 2016).
Ageing population of Australia has also put impact on the labour market. In recent
time, it is being anticipated that most of the male take participation in the formal labour force
for around less than half of their 80-year experience of life. In recent time, the emphasis is
now on the age group of 20 to 55 years. In order to fight with the ageing population of
Australia, the national strategy has been developed for providing the coordinated response to
such issue nationally (Owens, 2011). Until now, a well strategic long-term thinking and
economic management has helped the Australia in order to position itself in meeting the
challenges as well as putting some thoughts into action.
The main objective of the national strategy for the ageing Australia is to give the best
outcome and result for each of the Australia irrespective of their age. It also serves as the
framework for the national response that consists of the several opportunities and challenges.
It is also known as the vehicle for the regular leadership by the commonwealth government in
engaging the community of Australia on this serious issue. This national policy also proves to
be helpful for the government in removing the barriers and getting the opportunities like
controlling of birth rates and migration policy. Government also helps in getting the future
guideline in many of the areas. It has also documented the national policy by giving the
descriptive information regarding several issues. Due to the ever changing environment,
government of Australia is also establishing the proper an effective monitoring system so that
it properly fit with the ever changing environment (Magee Caputi and Iverson, 2011).
The concern regarding the ageing Australian population is the essential element that
needs to be addressed by the business, government and the community. Besides this,
Australian people are also required to get the proper training, education, housing,
employment, transport as well other opportunities so that they can optimise the quality of
better life. In fact, Australia has already multi-faceted, highly sophisticated, and the most
effective & better population policy. Population policy of Australia mainly depends on
managing the various factors including number of death and birth as well as the net overseas
migration. The recent structure related to Australia’s international migration programme was
mostly putted in the place by Howard government. Government research in the year 2010

AGEING POPULATION IN AUSTRALIA 4
also stated that net overseas migration of 1,60,000 to 2,20,000 people every year tends to
optimises the impact of migration on the increasing growth rate of gross domestic product by
changing the level of population ageing and changing the speed.
Australian companies are also adopting aged worker-friendly policies that help them
to survive and attract the best talent. Employer is required to deal with the real issue of how
to manage and cater to the needs of older employees (Connell, Nankervis & Burgess, 2015).
Understanding the requirement of mature-aged workers and implementing necessary
initiatives to accommodate these needs will be beneficial for both i.e. employer and
employee. For example, BMW, a luxury German automobile corporation found that many of
employees in the organisation most skilled at building of new product lines were becoming
too old to physically match the requirement of the job, hence, it brings together with various
simple alterations like brighter seats and lightening so that employees did not have to stand
all day. With time, this significantly enhanced productivity.
Management also found an increase in age discrimination and unconscious bias in
their organisation. In addition, Australian Human Right Commission states that one-quarter
of Australians aged 50 have experienced some sort of age discrimination in last some years
and out of ten enterprises, four of them stated that they would not recruit person having age
more than 65. To administer these inevitable alterations, some of the organisations and
employers are coming up with number of strategies such as succession planning in relation
with future resource needs, development of coaching and mentoring programs to encourage
transferring of skills between older and younger workers and many more (Denny &
Churchill, 2016).
Many organisations are also found a potential solution for older Australian seeking
employment and that is Labour hire agencies that help to minimise the possible barriers that
older Australians face. With this agency, it will help to take the work out of searching for a
job and could effectively connect them employment much faster than projected. The
organisations and employers in light of that issue mostly initiate all the above-mentioned
ways.
IN this way, population ageing is becoming the global challenge. The trends related to
demography are supposed to rise or may be double in the coming year. Besides this, old age
ration of Australia is also projected to rise in the coming few years. It is also increasing the

AGEING POPULATION IN AUSTRALIA 5
demand for financial instruments that may include the long-term indexed bonds, annuities, as
well as housing equity withdrawal products. In addition to this, if government want to
maintain or sustain the high level of economic performance, then it needs to put emphasis on
the changing economic environment. Government is also required to take the help of both
macroeconomic and microeconomic policies otherwise; it will become the economic problem
itself (Davies & James, 2016). Australia National strategy will also help in great way to
frame the efficient and effective policies related to the problem of ageing workforce. It also
put direct impact on the growth of economy. All the strategies made by the Australian
government are made in light of varied areas such as environment, society, and for global
polices (Song & Chen, 2015). It also includes the systematic plan of evaluation that tends to
monitor the plan at each stage of the implementation.
In recent time, this wicked problem is becoming quote complex and it will require the
long time for government to bring and address the correct mitigation measure and tool. If
proper focus will be given on finding the correct tool through effective research and
development, this problem might reduce or mitigate fully.

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